21st Century Holding Co. (TCHC)

[Gorella]

Property and Casualty company listed on Nasdaq.

Small Company (160 million Market Cap).

Covered by only one small investment research firm.

Stock closed today around $21.50.

8 million shares issued, 40% are held by insiders, another 15% by 5%+ holders, leaving a little under 4 million in the float.

Company came out couple weeks ago and said they will have earnings of $4.50 in 2007.

Book Value is about $9.00

Current P/E 9, Forward (2007) of about 4.5

Increased Dividend by 50% to 72 cents a year (3.4% dividend yield)

Fantastic Margins and ratios http://finance.yahoo.com/q/ks?s=TCHC

Personal opinion is that this stock has the potential to go to $35 a share. Could be picked up by a larger firm as well. Either way, they are really well managed and hedged themselves with reinsurance very well in the past.

This is not a daytrade, I don't have any good daytrades.

Good Luck and feel free to post thoughts or other opinions


***FULL DISCLOSURE*** I bought 1,000 shares today at $21.74.

 

[wiesman02]

Just curious why you're trading against a clear 3 month downtrend right now.

Granted the fundamentals looks damn good right now, if I were you, I'd have waited until the stock broke the resistence at around 24, and then start buying

 

[Gorella]

I understand what you are saying. I guess part of the decision making process for me was with alot of private equity money and M&A happening someone might want to just put in an offer and scoop them up. Although I might be overly optimistic and my timing really isn't that good I figure that I'll just start collecting dividend payments sooner.

I mean, if someone would lend me $240 million at 10%, I could buy the company for $30 a share. Based on 2007 numbers the company is going to make $36 million. Pay the bank 24 million in interest and even if you have 0% earnings growth the next 5 years, you're going to have a bundle of money in your pocket if you buy them and take em private.

 

[Pup]

This was Ironic!

I just bought a large amount of this stock yesterday! I say large $10,000 worth is large for me! Got a tip from a Friend in the market! He has been very successful & made me a ton of money! I bought (CMX) Caremark RX Inc. On his Reccomendation in Nov. 06 for $48.5 a Share & sold it at $63.50 Yesterday! I don't know much about it but this man knows what he is doing & is damn smart! Good luck I hope it goes!

 

[Gorella]

This stock is dirt cheap. Hope you got it in the 19's yesterday. got a couple more of my friends in on the dip. Management reiterated the 2007 numbers on Friday. Barring any hurricanes like the ones a couple of years ago, you should easily be able to double your money and collect the dividend all the while.

Welcome aboard.